confirmed yesterday.

But neither Mr. Charles Gunn nor his deputy Mr. James Masters would name the person or reveal his or her nationality. They cited Immigration procedures and contract negotiations as the reason.

Mr. Masters, chairman of the exchange's search committee, recently made a recommendation and the exchange's board accepted it, said Mr. Gunn.

"It was a group decision based on the recommendation made by Mr. Masters,'' he said.

Mr. Masters said earlier this year the six candidates being considered were non-residents.

The selection committee then cut that list to two candidates before arriving at a decision.

The exchange, owned by the Island's three banks, had extended the invitation locally.

The CEO will manage the stock market's expansion and maintain hands-on control as the exchange evolves into an internationally recognised stock exchange.

The exchange recently distributed new rules to the Bermuda Monetary Authority as well as selected international parties.

"Since we will be making the exchange international it has to be acceptable to the international community,'' said Mr. Gunn.

A Hong Kong firm, International Securities Consultancy Ltd., was contracted in connection with the exchange's plans for enhancement.

Part of those plans was the hiring of a CEO to report directly to the chairman of the council of the exchange and be responsible for overseeing the development and other aspects of the exchange's daily management.

The new CEO is likely to be well versed in drafting and implementing all types of stock exchange rules, regulations and bye-laws as well as an expert in securities law.

The successful applicant will also handle regulatory bodies and industry practitioners as well as be able to work on the development of the latest electronic trading and settlement systems and manage the introduction of new information technology systems.

The exchange has leased office space at the Washington Mall for the new CEO.